Everyone in banking knows the story of Hypo Alpe Adria’s demise in Austria following the global financial crisis. A lot has been written about the successor ‘bad bank’ Heta Asset Resolution, especially about the discussions with bondholders. What is missing from the picture is the fate of Addiko Bank, Hypo Alpe Adria’s successor bank holding the ‘good’ parts of the defunct Carinthian bank’s south-eastern European (SEE) operations.
Since Addiko Bank’s creation in mid-2015 a lot has changed. The lender, which only changed its name from Hypo Group Alpe Adria to Addiko in July 2016, has moved its headquarters from Klagenfurt in the southern state of Carinthia to Austria’s capital Vienna, started cleaning up its balance sheet and making structural changes.